Bankruptcy Exemptions
Filing for bankruptcy is not a decision that should be taken lightly and we suggest that in the very first instance you seek some advice from a professional that may be able to help you look at different alternatives.
In the past when someone filed for bankruptcy they generally lost anything that they owned within reason including any assets like houses, cars and even personal possessions.
Today with the introduction of the new bankruptcy laws there are ways to keep assets. To understand the matter clearly it is of paramount importance that you speak with a professional before making any decisions.
Today, there are various options that can help you get rid of your financial liabilities and in some cases you might not have to file for bankruptcy. Therefore, you must make sure whether filing for bankruptcy is the right option for you or not.
The exemptions are very much down to the individual and what their circumstances are but can include –
- Your house
- Your car (if under £2000-00 in value)
- Any tools you may use for Work
Bankruptcy exemptions can in some cases mean that you will keep your assets subject to an agreement. Through this new law, sometimes you can repay your creditors in full or half. However, a time period of 3 to 5 years is given to you for repaying the amount to your creditors and will result in your credit scoring being affected negatively.
This is not something that is very black and white and will involve a number of factors being taken into account. Your financial liabilities and income will be one of the many factors used.
Getting out of debt through a debt reducing process is currently very popular but you need to make sure that you use a professional that will help you and not do something that could lead to further misery.
All of the companies on the Confused Debt site are pre approved and vetted to ensure that you get the best results possible. If you would like to find out more about your options try our free debt calculator now.
